Health Clubs Tone Up Earnings For Bally

July 26, 1985

Bally Manufacturing Corp.`s profits surged 53 percent in the second quarter, muscled higher by results from its chain of health and fitness clubs. In the quarter, net income advanced to $10.8 million, or 40 cents a share, from $7.1 million, or 27 cents a share, in the year-earlier period.

Revenues fell 5 percent, to $379 million from $398.1 million. A Bally spokesman attributed the decline to the reduced size of the company`s amusement-game business following heavy writeoffs in the 1984 fourth period.

Robert E. Mullane, chairman and chief executive of the Chicago firm, said that he anticipated continued progress in earnings this year.

He said Bally`s largest unit, its health and fitness club chain, continued to record higher profits and revenues. The company`s Six Flags theme parks and Atlantic City casino-hotel also posted improved results in the second period, he said.

A Superior Court jury in New Jersey on Saturday found Six Flags and its New Jersey park not guilty of charges of manslaughter in the deaths of eight teenagers in a fire at the park.